Investors dig ‘Zipcar’

Zipcar
Inc., the car-sharing company that rents vehicles by the hour, opened at $30
and surged as much as 75 percent on its first day of trading after an expanded
initial public offering.

The
company, based in Cambridge,
Mass. raised $174.3 million in
its IPO yesterday, after increasing the shares and pricing them above the
range. The shares advanced $10.05, or 56 percent, to $28.05 as of 1:17 p.m. in
Nasdaq Stock Market composite trading.

Zipcar
sold 9.7 million shares at $18 each, according to a company statement. Zipcar
had offered 8.3 million shares at $14 to $16 apiece, according to a filing with
the U.S. Securities and Exchange Commission. Proceeds will be used to reduce
debt and expand internationally, the filing showed.

Zipcar
and Arcos Dorados Holdings Inc., the Buenos Aires-
based operator of McDonald’s Corp. restaurants in Latin America and the Caribbean, expanded their IPOs yesterday to meet demand.
Seven companies are attempting to raise at least $1.89 billion in U.S. initial
offerings this week, the busiest for new-stock sales in the country in more
than two months.

The
Zipcar offering was led by New York-based Goldman Sachs Group Inc. and JPMorgan
Chase Co. The shares surged as much as 75 percent to $31.50 earlier. Zipcar’s
largest investors included venture-capital firms Greylock Partners, Benchmark
Capital, Smedvig Capital Ltd. and Revolution LLC, the fund started by America
Online Inc. co-founder Steve Case, according to the prospectus.

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